Common ITR Filing Errors and How to Fix Them

##. Frequent ITR Filing Errors and Their Remedies

Filing income tax returns (ITR) is complicated, especially when you encounter numerous error codes. Here are some frequent problems with their reasons and solutions to assist you in the filing process smoothly.

Error Code 1: Tax Calculated but Gross Income Zero

Problem: This problem is mostly caused by discontinuous income reporting.
Remedy: To fix this, reconcile entries in Schedule BP (business income) and Schedule OS (other sources) to properly report income.

Error Code 3: Missing Profit & Loss/Balance Sheet

New Rule: Foreign businesses in India are now required to file audited financial statements.
Solution: Use the Excel utility for a smoother and more efficient data upload.

Error Code 8/28: Presumptive Income Limit Upgraded

Old Rule: Earlier, the presumptive income limit as per ITR-4 used to be ₹2 crore.
2024 Update: The limit is now upgraded to ₹3 crore for qualifying entities.
Action: Make sure you submit ITR-3 instead of ITR-4 if your turnover is higher than ₹3 crore to conform to the change.

Error Code 14: Loss Making? Audiot Required!

Clarification: In case your business reflects a negative net profit, an audit becomes compulsory under Section 44AB of the Income Tax Act.

Error Code 38: Pay Tax Before Filing

To prevent hassles in filing:

Step 1: Pay your tax using Challan 280 via Net Banking or UPI.
Step 2: Post payment, update Schedule IT with the information from the challan.

Recent Updates Affecting ITR Filing

ITR-U Window Extended: You can now rectify omissions for a period of four years from the assessment.
Wrong Notices Issued: If you are receiving faulty notices sent by mistake under Section 44AD, these can be disregarded since they do not relate to your actual filings.

By resolving these popular error codes and remaining up to date with recent changes, you can remain compliant and make your ITR filing process smoother.